Alan Parker, the outgoing chief executive of Whitbread, today told shareholders the group's focus on budget hotels and "affordable treats" at high street coffee shops was continuing to power industry-beating sales performance.

After six years at the helm of the company behind Premier Inn and Costa Coffee, Parker is departing on a high, telling shareholders gathered at the QEII Conference Centre in Westminster that sales were continuing to rebound ahead of peers.

"In these times of austerity, our strategy of value-for-money hospitality brands in growing segments of the market has put us in a position of relative strength," Parker said.

For the 13 weeks to 3 June, comparable sales at Premier Inn increased by 10.5% while at 1,100 UK Costa Coffee stores like-for-like sales growth was ahead by 8.5%.

The boost in budget hotels was fuelled in part by "dynamic pricing", suggesting price competition remains tough as rivals struggle to fill rooms. Since Whitbread's year end in late February, Premier Inn's occupancy rate has averaged 75.7%, up from 70.2% for the preceding 12 months.

Parker is credited with slimming down the sprawling leisure conglomerate during his six years as chief executive, jettisoning UK brand franchises for Marriott hotels and two Yum! Brands chains, TGI Friday and Pizza Hut, and disposing of David Lloyd Leisure rackets clubs and gyms as well as most of the group's pub restaurant estate.

Whitbread, with its heritage as a brewing and pub-owning group, diversified furiously after the 1989 Beer Orders forced the industry to sell off brewing operations. A rapid attempt to reinvent the business saw it acquire a host of leisure brands.

Parker has also won widespread praise for ensuring Whitbread entered the recent recession with a relatively conservative balance sheet – in sharp contrast with closest rival, private equity-owned Travelodge, which is currently thrashing out a complex restructuring deal among its debt and equity investors.

Despite Whitbread's relative balance sheet strength, Parker has in recent years taken rapid action to cut costs, freeze expansion plans and secure a deal with the group's colossal pension scheme.

Yesterday, he said he remained cautious on expansion plans. "Our longer-term expansion will continue at a pace appropriate to our competitive performance and growth in the market. We will remain vigilant on cost control and are currently planning to be broadly cashflow neutral this year."

The group is still expected to renegotiate some of its borrowings, with analysts expecting an extension to maturities in exchange for a higher rate of interest.